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News (NWSA) Interest Coverage

: 11.76 (As of Dec. 2023)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. News's Operating Income for the three months ended in Dec. 2023 was $294 Mil. News's Interest Expense for the three months ended in Dec. 2023 was $-25 Mil. News's interest coverage for the quarter that ended in Dec. 2023 was 11.76. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for News's Interest Coverage or its related term are showing as below:

NWSA' s Interest Coverage Range Over the Past 10 Years
Min: 7.06   Med: 12.98   Max: No Debt
Current: 8.28


NWSA's Interest Coverage is ranked worse than
56.72% of 610 companies
in the Media - Diversified industry
Industry Median: 12 vs NWSA: 8.28

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


News Interest Coverage Historical Data

The historical data trend for News's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

News Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.92 14.76 11.19 9.91 7.06

News Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.04 5.48 7.41 8.39 11.76

Competitive Comparison

For the Entertainment subindustry, News's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


News Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, News's Interest Coverage distribution charts can be found below:

* The bar in red indicates where News's Interest Coverage falls into.



News Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

News's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, News's Interest Expense was $-100 Mil. Its Operating Income was $706 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,068 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*706/-100
=7.06

News's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, News's Interest Expense was $-25 Mil. Its Operating Income was $294 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,074 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*294/-25
=11.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


News  (NAS:NWSA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


News Interest Coverage Related Terms

Thank you for viewing the detailed overview of News's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


News (NWSA) Business Description

Address
1211 Avenue of the Americas, New York, NY, USA, 10036
News Corporation is a diversified media conglomerate with significant presence in the U.S, the U.K., and Australia. Key mastheads include The Wall Street Journal, Herald Sun, and The Times. The company also has a strong presence in the Australian pay-TV market through Fox Sports and Foxtel (both 65%-owned), while its 61%-owned REA Group is the dominant real estate classified business in Australia. In addition, it owns HarperCollins, one of the largest book publishers in the world, and also has a substantial digital property advertising business (Move) in the U.S.
Executives
Marygrace Degrazio officer: Chief Accounting Officer 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Kelly Ayotte director C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Susan Panuccio officer: Chief Financial Officer C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
David B Pitofsky officer: General Counsel C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Kevin Halpin officer: Deputy Chief Financial Officer 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Joel Klein director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
James R Murdoch director C/O LUPA SYSTEMS, 363 LAFAYETTE STREET, NEW YORK NY 10022
John Elkann director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Elaine L. Chao director C/O DOLE FOOD COMPANY, INC., ONE DOLE DRIVE, WESTLAKE VILLAGE CA 91362
Ana Paula Pessoa director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Masroor Siddiqui director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Natalie Bancroft director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jose Maria Aznar director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Lachlan K Murdoch director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Cruden Financial Services Llc 10 percent owner C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501

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